Recent figures from the FLA show that Asset Finance continues to grow with a 10% rise in March, compared with the same month last year, and by 8% in Q1 2016, compared with the same period in 2015. One of the most striking facts about this continued growth is the large increase in IT equipment finance which grew in March by 29%, with the more traditional plant and machinery finance falling by 2% over the same period.
Furthermore overdue Corporation tax payments have hit a high of £1.59bn in 2015, with UK businesses also owing almost £2.6bn to HMRC in overdue VAT payments. As the economy recovers, many companies are now starting to invest in business growth again by improving their infrastructure, purchasing new equipment and expanding the workforce. Ensuring that this investment does not impact cash flow and the ability to meet payment deadlines remains a crucial consideration for your clients.
How can Brokers capitalise?
Brokers need to select their panel of lenders carefully and look for lenders that can offer them a number of key features that will enable them to service these new demands from their customers:
- Understanding: You need a lender who will take the time to understand both your and your clients' needs and react accordingly.
- Speed: You need a lender that can react quickly to your applications with a smooth, straightforward process that allows decisions to be made as quickly as possible and preferably within 24 hours
- Flexibility: Your lenders need to understand that each customer is different and as such, you need a flexible solution to place both large and small deals. Similarly you need the flexibility to choose where you place your deals, without pressure from lenders for a minimum referral volume.
- Range of Finance Solutions: In addition to traditional asset finance products, Brokers need lenders who are proven at providing commercial and professions loans across a wide range of market sectors.
- Innovation: As markets change, Brokers require lenders who can change too. Ideally lenders should also be able tailor schemes for particular markets, with the ability to develop products specific to key suppliers/vendors.
LDF will be attending the NACFB Commercial Finance Expo 2016 on 15th June at The Pavilion, NEC.
Visit us on Stand Number C01 to discuss your requirements. You will also be in with a chance of entering our prize draw to win £50 in Amazon Vouchers. Register to attend the event here.
Whether you require a fresh line of credit for your clients, or are keen to develop your existing panel of lenders, LDF can assist in finding the most suitable finance solution for your needs.
Become a LDF Broker and benefit from:
- Finance decisions typically within 24 hours
- A compeitive 3 tier credit and rate package for both asset finance and tax loans
- Flexible business partnership - no minimum volume requirement
- Increased commission potential